KARACHI, September 18, 2023: Pakistan’s textile exports recorded a decline of 8 percent YoY in Aug’23 to clock in at $1.4 billion as against $1.6 billion in same period of last fiscal year. The decline is mainly attributable to muted export orders amid global economic recession, as well as a challenging domestic environment.
Segment wise, the exports of value-added textile products such as Knitwear, Bedwear, and Readymade garments saw a decline of 8 percent YoY, to stand at $1.02 billion in Aug’23. Similarly, basic textile (i.e. Raw Cotton, Cotton Yarn, Cotton Cloth) slump by 8 percent YoY to clocked in at $0.2 billion, while other textile exports also plunged by 5 percent YoY to reach at $0.16 billion in Aug’23.
In volumetric term, the overall textile exports increased by 24 percent YoY in Aug’23 compared to SPLY. The increase is primarily driven by basic textile which are up by 30 percent YoY followed by valued added witnessing an increase of 23 percent YoY. Whereas, other textile products declined by 10 percent YoY.
In Aug’23, value added witnessed a volumetric increase of 19 percent MoM, while price decrease by 7.7%, resulting an overall MoM increase of 10% in value-added exports, to clock in at US$1.02bn. The increase in value-added exports was mainly contributed by knitwear, observing an increase of 10%. Similarly, bedwear, towel and readymade garments increased by 16%, 20% and 3%, respectively.
Basic textile exports saw an increase of 12% MoM in Aug’23, posting a volumetric growth of 15% while price decreased by 2.7%, reaching US$271mn vs. US$242mn in Jul’23. The increase in basic textile exports was majorly contributed by increase in cotton cloth & cotton yarn exports which are up by 14% & 8%, respectively.
Talking about the outlook analysts said that textile exports have remained sluggish amid multiple headwinds in domestic environment and weak global demand. We expect textile exports to increase in volumetric terms amid resurgence of demand in export regions, however, downward revision in product prices is likely to offset the impact.
Furthermore, headwinds in domestic economy will continue to hamper textile players which includes elevated gas & electricity tariffs, delays in clearance of essential inputs and increased finance rate. However, cotton production for the upcoming year looks promising which would provide some respite to local textile manufacturers, they added.